Should I Refix Home Loan with ANZ?

Ash-Say on 03/02/2022 - 08:32

I have two splits (1 year fix @ 2.04% and 2 year fix @2.19%) with ANZ for OOP where the fixed term for both splits is expiring in April. Total loan amount is just shy of $500k.

I have been approached by ANZ and they made an offer to re-fix as of today @1.99% for 1 year. They will also waive the fee for breaking fixed terms 2 months early.

Good thing with ANZ 1 year fixed term is that it comes with full offset. I have free offset for both splits and also fee free Black Rewards card due to package(annual fee of $395).

I know there have been few cashback offers and some very good rates even going down to 1.79% with Ubank.

Will appreciate some feedback on the situation and best approach to be taken.

Financial Home Loan

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Comments

  • bobbified on 03/02/2022 - 08:37

    Flip a coin?

  • Markoov on 03/02/2022 - 09:05

    You can work on the refinance with Ubank for instance, in the meantime try to get a fix rate lockup with ANZ in case the application was unsuccessful with other lenders.

  • Duckie2hh on 03/02/2022 - 09:14

    Negotiate a better rate using ubank as a comparison

  • ol mate on 03/02/2022 - 09:50

    They advertised 1 year fixed is 2.5%-ish. I'd jump at the 1.99%.

    If you go for the Ubank option, pay for the rate lock at time of application.

    • Ash-Say on 03/02/2022 - 10:08

      Rate lock is $750 fee per split so looking at $1500. Not worth it.

  • tyarrhea on 03/02/2022 - 09:55

    It depends on how much is in your ANZ offset. I don't think uBank allows offset against fixed rate loans so if there is enough cash, it could bring the effective rate down below 1.79%.

  • chartparker on 03/02/2022 - 10:08
    +1

    Hard to say. Everyone reckons rates will go up, but as we've seen, life is ultra unpredictable right now. A new strain could come out tomorrow and turn everything upside down. Again

  • JDMcarfan on 03/02/2022 - 10:09

    mate i fixed in December at 2.34% and was kicking myself for not going on it sooner when it was 2.04% as well (was getting the loan moved from Inv to OO).
    The fact you've been offered 1.99% doesn't sound right and is kind of shocking but if its a legitimate deal then id be putting pen on paper ASAP.
    Looks like your a special ANZ customer to be offered that rate, and to have had offsets on the 2 year loan as well, but as you say the biggest benefit of ANZ's 1yr over any other is that it carries a full offset on it as well.

    • Ash-Say on 03/02/2022 - 10:35

      I have everything in writing so hopefully there won't be any drama about early termination fee.

      Yes I have 2nd offset account but it is not currently linked with 2 years loan. It's free but was only used previously when this 2 years loan was previously fixed for 1 year. None the less, I am not being charged $10/month for having 2nd extra offset.

    • bmxr on 03/02/2022 - 11:20

      There are low rates out there. As OP said, Ubank at 1.79%

      We got 1.79% fixed for 2-years with CBA in August last year. We are part of their wealth package which costs $395 p.a., but we saved more than three times that on repayments and interest in the first month alone.

      • JDMcarfan on 03/02/2022 - 11:42
        -1

        yeah this is defs true but a rate that low with a big 4 is near impossible now.
        unaware of UBank specifically but to my knowledge from researching at the time, ANZ is the only notable bank, and one of only a few banks overall that allows a 100% offset with a fixed rate loan (albeit only 1 yr). This benefit is often worth the small price premium over cheaper 2nd-tier banks as having everything in a cheaper fixed offset over a split over a fixed and variable loan (usually more expensive) will work out cheaper for most cases.

        1.79% fixed for 2-year at CBA is a fantastic rate is never to be repeated so count your blessings! Congrats on the deal.

  • [Deactivated] on 03/02/2022 - 11:40

    Black Rewards has no annual fee but they still charge you a $110 reward program fee

  • Seraphin7 on 03/02/2022 - 11:48

    With a full offset, a one year fixed at 1.99% sounds like a great deal. I'm not across the totality of offers out there, but I would value having full offset with an attaching credit card at more than 0.20%.

  • [Deactivated] on 03/02/2022 - 11:56

    moved from ANZ to HSBC for 1.88 fixed for 2 years.

    • chartparker on 03/02/2022 - 15:04

      How are you finding HSBC? We're looking at moving to them for 1.97% variable (we have plans to move later in the year but who knows if that'll happen). I've heard horror stories about their customer support

      • [Deactivated] on 03/02/2022 - 18:59

        Internet banking and mobile app aren’t as great. But it doesn’t matter when I’m saving so much. I’ve had to call support a few times and it wasn’t great but not too bad either. These were initial set up issues. Now that I’m down, I don’t think I’ll need to call them again anytime soon.

  • silenthillrocks on 03/02/2022 - 14:23

    Did you have to do anything to receive the offer?

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